Khorwal Financials
SWP — Systematic Withdrawal Plan
Generate the retirement income you deserve — without outliving your savings
The greatest fear of retirement isn't death — it's running out of money while still living. A Systematic Withdrawal Plan (SWP) is the intelligent solution to this problem: it converts your mutual fund corpus into a reliable, tax-efficient monthly income stream while allowing the remaining corpus to keep growing.
Most retirees in India default to Fixed Deposits — and slowly watch inflation erode their purchasing power over 20+ years. An SWP, structured correctly, keeps your corpus ahead of inflation and pays you every month.
At Khorwal Financials, we design SWP portfolios built for longevity — meaning your money should last as long as you do, and ideally leave something meaningful for your family.
Ideal For
Retirees & near-retirees
Min. Corpus Needed
₹10L+
Withdrawal Frequency
Monthly / Quarterly
Tax Advantage
Lower vs. FD interest
A Real Retirement Scenario
Retirement Corpus
₹1 Crore
Monthly Withdrawal
₹40,000
Expected Fund Return
10–11% p.a.
Corpus Survives For
25+ years
* Based on balanced equity-debt portfolio with 10.5% average annual return. Past returns not guaranteed.
Why SWP Beats Every Alternative
Portfolio Survives, Income Continues
Unlike an annuity that ends with your death, an SWP-driven portfolio remains your asset. Unused funds continue to grow, beating inflation, and can be inherited by your family.
Tax-Efficient Monthly Income
FD interest is taxed at your slab rate (up to 30%). SWP withdrawals from equity funds held beyond 1 year attract only 10% LTCG tax on gains above ₹1L per year — a massive tax saving that compounds over retirement.
Inflation-Protected Withdrawals
We model your withdrawal amount against expected inflation, ensuring your ₹50,000/month today still covers your lifestyle at 70, not just at 60.
Fully Flexible & Reversible
Need more money one month? Pause, increase, or decrease your SWP at any time. No lock-ins, no penalties, no bank manager approvals.
Frequently Asked Questions
An SWP is a facility provided by mutual funds that allows you to withdraw a fixed amount of money at pre-defined intervals (usually monthly). It's essentially the opposite of a SIP, used to generate regular cash flow.
SWP vs Fixed Deposit — The Numbers Don't Lie
| Feature | SWP (Mutual Fund) | Fixed Deposit |
|---|---|---|
| Monthly Income | ₹40,000 (from ₹1Cr corpus) | ₹33,000 (at 4% p.a.) |
| Tax on Income | 10% LTCG on gains only | As per income tax slab (up to 30%) |
| Capital Growth | Corpus continues to grow | Principal fixed; no growth |
| Flexibility | Fully flexible, pause anytime | Penalty on premature withdrawal |
| Inflation Protection | Yes — equity component grows | No — fixed interest rate |